May 19, 2014
In a report recently published by GrowthPraxis it is expected that NFC terminals in the US will reach 55% POS penetration by the end of 2018, while the number of mobile POS terminals is expected to reach 7.7 million by 2020. The report also projects the total demand for POS terminals till 2020. Installed base of POS terminals by technology has been projected till 2020.
The US retail and hospitality sector has about 20 million merchant establishments (Business location of a company). About 33% of these merchants are medium to large merchants with more than 1 employee while the other 67% are micro merchants with no employees. However, only about 35% of these 20 million merchants have the capability to accept electronic payments through point of sale terminals.
The installed base of point of sale terminals in the U.S. is estimated at 13.9 million terminals of which around 1.7 million terminals are Mobile POS. The average number of POS terminals per store is estimated at 2 per store which accepts electronic payments. Among the store formats; the Supermarkets & Grocery Store followed by Convenience Stores & Gasoline Stations are amongst the largest adopters of POS terminals (% penetration of POS). The micro merchant’s category has the least adoption rate when it comes to point of sale adoption.
EMV POS adoption by merchant categories varies drastically. At the end of 2013, less than 3% of these POS terminals were EMV enabled. The supermarkets and grocery store that are capable of investing in technology are the one’s leading in the adoption of EMV POS with penetration more than 20%. Target and Neiman Marcus breaches are expected to stimulate the adoption of EMV. On the other hand, gasoline station merchants who enjoy a buffer time of two additional years for the liability shift, have the lowest adoption rate of EMV.
By 2018, not all POS terminals in the U.S. will be EMV compliant as per GrowthPraxis estimates. UK with fewer than a million POS terminals took nearly 7 years for EMV migration to reach close to 100%. UK had missed the liability deadline when it comes to EMV migration even with few banks and stakeholders in the system.
NFC terminals in the US are expected to reach 55% penetration by end of 2018 while number of mobile POS terminals is expected to reach 7.7 million by 2020. As of 2013 year end, 33 major retailers among the top 100 retailers have adopted NFC (Pilot/Initiated roll out) and are serving end consumers through their own solutions or through MasterCard, ISIS, Google wallet solution or others. This indicates a preliminary trend towards adopting NFC as a payment technology. At the same time, multiple retailers are lining up to adopt NFC in 2014.
Table of Content:
1. Installed Base of POS terminals in the U.S.
- Segmentation by technology
- Segmentation by category of merchant
- Segmentation by technology and type of merchant
2. POS adoption rate by Merchant category and Average POS per Merchant
- Supermarkets and Other Grocery Store
- Convenience Stores /Gas Stations
- Hotels, Restaurants, Motels and others
- Pharmacies and All health and Personal Care Stored
- Department Stores including stationeries, Home Décor's etc)
- Others (Specialty including)
3. Future Outlook of EMV POS terminals in the U.S. (2013 - 2020)
- New Additions and Installed base of EMV POS terminals per year
4. Future Outlook of NFC POS terminals in the U.S. (2013 - 2020)
- New Additions and Installed base of NFC POS terminals per year
5. Future Outlook of Mobile POS terminals in the U.S. (2013 - 2020)
- New Additions , replacement and Installed base of Mobile POS terminals per year
6. Future Outlook of Magstripe POS terminals in the U.S. (2013 - 2020)
- New Additions, replacement and Installed base of Magstripe terminals per year
8. Future of US Payments Industry - Merchant Adoption
- POS terminal systems with key retailers
- NFC/BLE enabled merchants in the US
- Apple on Payments
- List of merchants accepting Contactless payments
9. Market Size of magstripe POS terminals (2014 to 2020)
10. Market Size of EMV POS terminals (2014 to 2020)
11. Market Size of NFC POS terminals (2014 to 2020)
12. Market Size of Mobile POS terminals (2014 to 2020)
Retailers – Wal-Mart, Kroger, Target, Costco, Walgreens, Home Depot, Lowe’s, Mcdonalds, Macy’s, Nordstrom, Sears, Apple stores, J.C. Penney, Staples, Subway, Gap, 7- Eleven, Aldi, Starbucks, Burger king, Office Depot, Autozone, Safeway, CVS caremark, IKEA and 100+ others.
POS and Tech companies – Ingenico, NCR Corp, Fujitsu, Harbortouch, Accuspos, Vend, POS nation, Verifone, Square, Payleven, SumUp, and dozens of others.
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